Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
APA Group has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
APA Group displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
APA Group's Interest Coverage for the quarter that ended in Dec. 2025 was 1.43.
APA Group's debt to revenue ratio for the quarter that ended in Dec. 2025 was 4.11.
As of today, APA Group's Altman Z-Score is 0.82.
APA Group (ASX:APA) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
APA Group has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
APA Group Financial Strength Related Terms
ASX:APA vs ATO, NI, UGI: Financial Strength Comparison
For the Utilities - Regulated Gas subindustry, APA Group's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
APA Group Financial Strength vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, APA Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where APA Group's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
APA Group has a Z-score of 0.82, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 0.82 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
APA Group (ASX:APA) has a Financial Strength of 2 as of Dec. 2025. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on APA Group and its competitors. This is 33% below median its historical median of 3.00. Over the past decade, APA Group's Financial Strength has ranged from 1.00 to 5.00.
Is APA Group's Financial Strength too high?
APA Group's current Financial Strength of 2 is 33% below median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 5.00. Overall, APA Group has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does APA Group's Financial Strength compare to ATO and NI?
APA Group's Financial Strength of 2 can be compared against companies in the Utilities - Regulated industry. Historically, APA Group's own Financial Strength has ranged from 1.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Utilities - Regulated company?
A good Financial Strength depends on the Utilities - Regulated industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on APA Group and its competitors. APA Group's current Financial Strength is 2, which is 33% below median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is APA Group stock overvalued right now?
Based on GuruFocus' analysis, APA Group (ASX:APA) is currently considered Modestly Overvalued. The stock's GF Value™ is A$8.37, compared to a current price of A$10.06 — trading 20.2% above its estimated fair value. The current Financial Strength is 2, which is 33% below median its 10-year median of 3.00. APA Group's overall GF Score™ is 71/100 with 13 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For APA Group (ASX:APA), the current Financial Strength is 2 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is APA Group (ASX:APA) Overvalued in 2026?
Based on GuruFocus' analysis, APA Group stock appears to be overvalued.
The current stock price of A$10.06 is trading 20.2% above its estimated GF Value™ of A$8.37.
GuruFocus considers APA Group to be Modestly Overvalued.
Key valuation signals for ASX:APA:
Financial Strength: 2 (33% below median its 10-year median of 3.00)
GF Value™: A$8.37 vs. price of A$10.06 (20.2% above fair value)
No single metric tells the full story. See the ASX:APA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
APA Group is Australia's largest gas infrastructure company with an extensive portfolio of transmission pipelines, distribution networks, and storage facilities, and is increasingly investing in renewable energy generation, electricity transmission, and batteries. It is internally managed and has direct operational control over all assets. It owns minority stakes in a few smaller gas infrastructure companies and manages operations for most of these. The stapled securities comprise a unit in Australian Pipeline Trust and in APT Investment Trust.
71GF Score
Get the complete analysis for ASX:APA
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:APA has been successfully added to your 
